[Closed] Car leasing, anyone here do it??

Ive seen those but i really struggle with it not being my car.

And given you don't see cars littering the side of the road

Very randomn comment.

When I was younger I spent a fair bit on cars.

Now when I hear people spending £300 to lease car and thinking it's cheap , I just shake my head.

That's £7,200 thrown away to have a boring and mundane car for 2 years.

[url= http://www2.autotrader.co.uk/classified/advert/201602181153713?page=1&maximum-mileage=up_to_30000_miles&make=ford&price-to=5000&searchcontext=default&maximum-age=up_to_5_years_old&postcode=tn126rt&search-target=usedcars&radius=1500&sort=default&onesearchad=used%2Cnearlynew%2Cnew&model=focus&logcode=p ]Why not get seomthing like this for £5k?[/url]

You would probably get £2-3k for it after 2 years.

And given you don't see cars littering the side of the road
Very randomn comment.

i see plenty cars littering the sides of the road.

most residential areas are overflowing with them infact. Blocking pavements and such......

Why not get seomthing like this for £5k?

You would probably get £2-3k for it after 2 years.

I think this is the limit where a lot of people divert to leasing. In buying at 1-2k you can get a car that is almost disposable as its comparatively less than the lease. At £5k its tying a lot of money into the car and that's where people get tetchy about expensive repairs and such. The cost of leasing at that purchase price (and return) is not much more, so the safety net of no extra cost lease is seen as worthwhile.

New cars tend to be much safer than old ones too. At least for the occupants!

good point there, STATO - I’m beginning to wonder why I spent exactly £5k on a car now.

Rachel

Stato has it and you still have to insure and tax that depressing Focus you posted as well as MOT, servicing and general running costs such as tyres. You won't get £2k for that in 2 years I bet £1.5k at the most.

although all things asside that focus is no more depressing than an octavia/golf/mondeo........

and on its side - you dont have to hand it back at the end of your 3 years and start again.....

but as noted - its not yet in the throwaway catagory.

although all things asside that focus is no more depressing than an octavia/golf/mondeo........

My mother in law has one, it's awful. 😀

It's all done to choice. Some like prefer to get a car of my choice new and trouble free for 2 years. Others go down the banger route to which I can see the appeal and have done myself. I don't anymore as I prefer the option of a newer car, there's no right or wrong to either.

This comes up every time there is a lease car thread.

It works for some people and it doesn't for others, for example it works for those with a car allowance - you always have a car under XX years, you know the outgoings each month etc. Those who do the school run twice a week in a 10 year old car will never make the maths work.

Remember too, this is STW. You don't [i]need[/i] a new car, that is quite correct but you also don't [i]need [/i] a 5 grand mountain bike when a second hand 5 year old bike will still get you up and down hills 😉

But say, keep that Focus 5 years, budget £3k for repairs, MOT, tax and you're in for £8k.

Leasing @ £250/mth for 5 years and you're in for £15k plus any remedial body work that needs sorting before you hand back.

You still need to insure both.

£7k + over 5 years is quiet a saving.

I guess it depends on whether you want to save money or have a new car.

We could all save lots of money by buying perfectly good second-hand clothes and shoes. How many of us do that?

I guess it depends on whether you want to save money or have a new car.

I'm not denying that, but the discussion started out about cheap reliable motoring didn't it? Somewhere on the last page someone claimed you couldn't run a second hand car for less than the £3500/yr they were paying on a lease; which is ridiculous.

I think we all agree, there's not a particularly cheap way to a new car, but we're saying there are cheaper ways to reliable motoring than leasing/hiring.

And now we're just all going around in circles.

but the discussion started out about cheap reliable motoring didn't it?

[quote=wrecker ]

It's really not - I mentioned my figures above, to lease what I currently own for 3 years would cost almost twice the amount I've paid all in.

I've already had my car over 3 years - if it dies tomorrow I'm already thousands of quid up. The figures I'm working on are what it's cost me over 3 years compared to the cost of the lease - the difference is more than 2 major repairs (and I'm already including DMF/clutch replacement in my costs), you'd have to be [b]really[/b] unlucky to lose out on that basis.

[quote=Rich_s ]New cars tend to be much safer than old ones too. At least for the occupants!

Depends how old you're talking - when I bought mine it was the current model, and I doubt it's much different now, given the update since was only a facelift. I don't know what others are comparing with, but I'm basing my comments on second owner cars bought at 2-4yo which are the ones people paying for leases have paid for all the depreciation on. It's a long time since I've bought a car which wasn't a current model.

[quote=Drac ]Stato has it and you still have to insure and tax that depressing Focus you posted as well as MOT, servicing and general running costs such as tyres. You won't get £2k for that in 2 years I bet £1.5k at the most.

If you buy from ling you'll still have to insure it, pay for servicing (which you'll have to go to a main stealer for, so will likely cost more than servicing an older car and getting it through an MOT) and tyres. The current valuation on a 2 year older one of those is £2.6k Private poor condition, £3k trade in, so you're way out - I expect you'll easily get over £3k in 2 years if you look after it (and if you don't it will cost you less than not looking after a lease car), hence £2k loss compared to £4.8k for a lease. The only way it isn't much cheaper to run that is if you use dodgy figures - do you really think a 5yo car loses 2/3 of its value in 2 years? 😯

Leasing @ £250/mth for 5 years and you're in for £15k plus any remedial body work that needs sorting before you hand back.

You still need to insure both.

So you've gone from 2 years to 5 years, while you're right in 5 years that car will be needing all sorts done. Never had to do any work yet.

Insurance is included. You don't have to go to a min dealer not for about 10 years.

I don't buy from ling.

[quote=johndoh ]I guess it depends on whether you want to save money or have a new car.
We could all save lots of money by buying perfectly good second-hand clothes and shoes. How many of us do that?

Did somebody mention apples and pears before? You're talking a way different order of magnitude there - the whole point is that people choose to spend a lot of their money on having a shiny box to drive around in.

"in 5 years that car will be needing all sorts done."

Such as ?

[quote=Drac ]So you've gone from 2 years to 5 years, while you're right in 5 years that car will be needing all sorts done. Never had to do any work yet.
Insurance is included. You don't have to go to a min dealer not for about 10 years.
I don't buy from ling.

I think the point is that people often keep s/h cars for 5 years, so you have to look at how much a lease costs over that period.

I'm betting you still pay more for your servicing than I do for mine including MOT - you can't put that one down as being more expensive for an older car.

My apologies - ling was being touted as good value upthread - where do you get yours from which is much better?

You're talking a way different order of magnitude there

the whole point is that people choose to spend a lot of their money on having a shiny box to drive around in.

point is that people often keep s/h cars for 5 years, so you have to look at how much a lease costs over that period.

Do they really.

NHS Fleet Solutions.

The difference? The ready availability of a wide selection of good quality s/h cars directly equivalent to new ones. I wouldn't know where to go to browse good quality s/h shoes or clothes - people don't tend to lease those so there isn't lots of availability of s/h ones with little wear.

Though my main point was about the amount people spend on cars - if it was similar to the amount people (who aren't fashion addicts) spend on clothes then it would be a much less significant thing. There's a point though - owning a new car is much like being a fashion addict, and getting rid of it before it goes out of fashion 😈

I wouldn't know where to go to browse good quality s/h shoes or clothes

Any town centre in the UK as the only thing left is Charity Shops. 😀

[quote=Drac ]Do they really.
NHS Fleet Solutions.

Well I tend to keep mine a lot longer, but I understand some people change that often. So you're comparing with an option not available to the general public? Without going into details, would you care to comment on how you're paying a month, and how much the same thing would be on ling so we can compare?

I already did. The question was who leases a car and I replied.

No idea what Ling charges or others as I don't use them.

Any town centre in the UK as the only thing left is Charity Shops.

I note that the Skoda Yeti 1.2 deal has gone up by £10 a month since yesterday!

I'm curious as to how the Skoda direct deal is less than half the price of similar deals from other leasing companies for the same car.

[quote=Drac ]Any town centre in the UK as the only thing left is Charity Shops.

I must have missed the ones where you can see some shoes you like and ask for a pair in your size.

Ah, sorry I missed your reply - so you're paying £7.2k over 2 years - if we knock off £1.2k for the insurance, servicing and tax (which is a bit more than I'm paying) then if you spent the £6k on a s/h one instead you'd have a £4k asset at the end. I still don't see how it is cheaper.

Thanks for all the replies...just read through every one of them, even more confused now though..
I do less than 10k miles a year and the car would be sat outside the house most of the week as I ride my bike to work 99% of the time and the wife doesn't drive..
The old V reg Astra we have now does the job we need to a certain degree, and any long trips we do, say a 200mile round trip to lakeside in Essex/Kent from Portsmouth I always hire a car from budget for about £50/60 plus fuel for the weekend,so I get to drive a new car every once in a while and yer it is nice to do that so maybe that's where I got the idea of leasing from as I don't have the immediate funds to buy outright and like I said at the start I'm not in favour of 2nd hand car dealers..
I've had decent cars in the past (mostly golfs) but had to sell my last one to reduce my outgoings and I was without a car for 6months which was bloody hard, the Astra came up from a friend so I bought it as I knew the history of it and only paying £600 I couldn't really lose, had it 2 years now and never let me down it just looks old now and maybe time for a change
Cheers

I must have missed the ones where you can see some shoes you like and ask for a pair in your size

Have you lost your sense of humour?

Ah, sorry I missed your reply - so you're paying £7.2k over 2 years - if we knock off £1.2k for the insurance, servicing and tax (which is a bit more than I'm paying) then if you spent the £6k on a s/h one instead you'd have a £4k asset at the end. I still don't see how it is cheaper.

Don't forget other be genral running costs. I've never claimed it was cheaper that buying a old car but if you want new it's a big consideration.

Dubber you fit the secondhand market better than new so I'd look at that option.

[quote=dubber71 ]I don't have the immediate funds to buy outright...

had to sell my last one to reduce my outgoings

Hence the discussion on whether leasing is good value, because it seems that whilst you like the idea of a new car, the bigger issue is your lack of funds.

There is no way it's actually "cheaper" to lease a car than buy a similar model that's 3 - 5 years old.

If you really want to pick up value for money cars, you can always take a "risk" and go to a car auction. They are full of 3 year old ex-lease vehicles.

I've bought 3 cars at auction in last 10 years and they have all been bargains.

if your subject to cashflow issues id be very wary about signing up to a lease for 3 years - you cant just flog the motor to get out of it .

some do have buy back clauses written into the contract but from what ive seen the consumer is the one that takes the hit.

[quote=Drac ]Have you lost your sense of humour?

😳 but, but, you forgot the smiley

Don't forget other be genral running costs.

Such as? I presume you still have to pay for fuel? 😉

I've never claimed it was cheaper that buying a old car but if you want new it's a big consideration.

Ah, well maybe we don't disagree all that much - you confused me by seemingly agreeing with STATO:

[quote=STATO ]The cost of leasing at that purchase price (and return) is not much more, so the safety net of no extra cost lease is seen as worthwhile.

Such as? I presume you still have to pay for fuel?

Yes. I presume your car has tyres and other such gubbins?

Stato is making the same point, I didn't think he might buying a cheap secondhand.

[quote=Drac ]Yes. I presume your car has tyres and other such gubbins?

I presume lease cars do as well - does your deal include tyres then?

Stato is making the same point

He's saying it's not much more - presumably almost twice as much falls within his definition of not much. We're not talking really cheap or really old here - depreciation of a 3-4yo car is only ~£1.5k a year.

depreciation of a 3-4yo car is only ~£1.5k a year.

Really?

Most cars lose at least 50% of their value in the first 3 years.

You can pick up an average mileage BMW/Mercedes for about half the original price - 3 yr old 520d about £16k. Other makes depreciate more. So a typical £20k family car, will probably be worth £8 - 10k, which is at least £3.3k per year.

Really?

Most cars lose at least 50% of their value in the first 3 years.

You can pick up an average mileage BMW/Mercedes for about half the original price - 3 yr old 520d about £16k. Other makes depreciate more. So a typical £20k family car, will probably be worth £8 - 10k, which is at least £3.3k per year.

He means when a car reaches 4 years old it will only *continue* to depreciate at £1.5k a year thereafter.

OK. Thanks for that, I wasn't sure what point he was making.My mistake. 😳

I agree depreciation isn't a lot on older cars.

My point was that if a person [u]feels [/u]they can get a lease deal for the same net cost over against a s/h car over 2 years, then that's why they will move to lease over buying. Clearly if your car doesn't break down and you can keep it for 5 years you will win (apart from not having something new), but peoples expectations of astronomical repair or service costs make them believe this is not possible.

Possibly because the sort of person to lease is the sort of person who uses dealers or quickfit for servicing, again for same reasons as leasing such as peace of mind of a large chain and not having to deal with problems like dodgy back street mechanics (lets ignore the dodgy quickfit stories for now!), so the expected costs of s/h motoring for the average leaser is much higher than the reality of a confident amateur mechanic or person who is happy to hunt out and haggle with a private garage.

Modern cars (ie. within last 10 years) are very reliable, and the chance of a £1k plus repair being required is low, but there are still costs and not knowing how much a full brake service is, or why they might need a new CAT scares people.

My Dad has been running cheap s/h cars my whole life. His big Jeep broke recently (again, its a running joke but he loves it) so he just went out and bought a s/h astra for peanuts to go to work while the Jeep was fixed, he has had it 6 month now and we worked out its probably paid for itself in reduced fuel bills, but otherwise is solid as a rock. Heater is crap mind.

chance of a £1k plus repair being required is low

Ah fair enough - I was misinterpreting you by picking out one quote and ignoring all the stuff you've written I agree with. I'm assuming most people on here are more at the mechanical savvy end. I would claim I don't do most car stuff any more, but then I do my own oil changes and a lot of minor stuff most people would throw at a garage - eg the bonnet cable on my Mondeo which is a common fault and would probably have cost over £100 in labour. As mentioned above I've had the £1k DMF/clutch repair, but then I was expecting that and factored it into my costs when I bought.

I shouldn't complain, as it's the people getting leases who supply the market for the cars I buy (my last 3 have been ex-lease I think).

aracer

As I said in the very first post, I now have better wages, by £120 per week, I sold the car I mentioned over 2yrs ago to reduce out goings.
There is no bigger issue on lack of funds but thanks for the post anyway

I'm very mechanical savvy and have access to people who could help me with stuff, but I'd prob still get a lease can as I can't be arsed with the time. Time short money rich (relative) as they say. Only reason I've not is I'd wreck one puttin muddy shitty bikes and kit in it (oh and I don't have a licence 🙄 )